Does the strength of each of the five competitive forces from Michael Porter's model remain constant over time? Briefly explain
What will be an ideal response?
The strength of these forces changes over time. For example, a small supplier might grow into a virtual monopolist—as happened to IBM in its dealings with Microsoft.
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When foreigners are making more "investments" in a country than the residents of the country are making abroad, which of the following is most likely to occur?
a. Inflation. b. Rapid growth of the money supply. c. A balance of trade deficit. d. A negative net investment rate.
Which of the following statements is correct?
a. If duopolists successfully collude, then their combined output will be equal to the output that would be observed if the market were a monopoly. b. Although the logic of self-interest decreases a duopoly's price below the monopoly price, it does not push the duopolists to reach the competitive price. c. Although the logic of self-interest increases a duopoly's level of output above the monopoly level, it does not push the duopolists to reach the competitive level. d. All of the above are correct.